The Australian corporate regulator ASIC has commenced legal proceedings against 10 former executives and directors of Star Entertainment Group, alleging they failed to adequately address money laundering risks and criminal associations at the company's casinos between 2017 and 2019.
The Australian Securities and Investments Commission ( ASIC ) has launched a legal case against 10 former executives and directors of Star Entertainment Group, alleging breaches of their duties under the Corporations Act. The Federal Court in Sydney will hear the case over six weeks, with ASIC claiming Star's leadership failed to adequately address money laundering risks and criminal associations at its casinos between 2017 and 2019.
ASIC alleges that Star's leadership approved relationships with individuals linked to organized crime, prioritizing short-term profitability over thorough due diligence. The regulator also claims that Star ignored red flags regarding criminal ties with the Asian gambling junket Suncity, failing to escalate concerns to the board. Specific instances highlighted by ASIC include the use of China Union Pay debit cards for gambling, which violated the card issuer's terms, and suspicious financial transactions, including bags of cash tied with elastic bands and cheques made out in cash.Former executives, including Matt Bekier, Paula Martin, and Harry Theodore, are accused of various misconduct, including misleading NAB about the use of China Union Pay debit cards and failing to address money laundering risks associated with junkets. Harry Theodore, Star's former chief financial officer, has agreed to settle with ASIC and will be disqualified from managing corporations for nine months. The trial is expected to shed light on the casino operator's internal controls and risk management practices, with ASIC arguing that the alleged breaches could result in the loss of Star's casino license. In a separate development, Star Entertainment's shares surged on Monday after confirming it received bids to buy its 50% stake in Brisbane's Queen's Wharf casino development.
MONEY LAUNDERING STAR ENTERTAINMENT ASIC CASINOS CORPORATE REGULATION TRIAL
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